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Pentagon Urges Caution Involving
Trans-Atlantic Defense Mergers

By

Thomas E. Ricks and

Anne Marie Squeo Staff Reporters of The Wall Street Journal

Updated Oct. 27, 1999 1:15 a.m. ET

WASHINGTON -- The Pentagon thinks it's "premature" to expect any big trans-Atlantic defense mergers soon, despite a recent wave of industry mergers in Europe, a top official told a group of industry executives.

In a predinner speech at the Pentagon Monday before about 20 executives of the biggest U.S. and European arms companies, Deputy Defense Secretary John Hamre said that before any "megamergers" occur, European companies need to digest the acquisitions they have already made. In the meantime, he...